JPMorgan Chase says that "the real economic consequences of this (Panama Papers) fiasco are not going to be all that severe," and recommended buying Panamanian sovereign bonds.

The investment bank JPMorgan Chase believes that all of the factors that have sustained economic growth in Panama are still present, and if Panamanian sovereign bonds have underperformed this year as a result of greater aversion to risk after the Panama Papers scandal, then investors should "buy Panama".

The report by JPMorgan Chase reported on by Bloomberg.com, indicates that "... Negative headlines triggered by the so-called Panama papers scandal earlier this year may have created an opportunity to buy the Central American nation’s sovereign bonds".

In this context, the Directorate of Public Financingat the Ministry of Economy and Finance (MEF)announced the repurchase of up to $300 million from a Treasury Note maturing in 2018. The planned buyback date is July 26 and the settlement date is 29 July.

The statement from the ministry went on to say that investors holding these securities may decide to accept the government's offer and receive their investment and their yields or wait for the bond to mature in 2018.

According to a filing with the U.S. Securities and Exchanges Commission, the Canal country could sell up to $2.5 billion in bonds and warrants.

This decision could be motivated by a recent improvement in Panama's rating on behalf of Standard & Poors, who raised its investment rating outlook to "Positive", putting the country on the cusp of investment grade.

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